ISLAMABAD: The government has introduced a new pricing mechanism for oil refineries in a bid to provide relief to consumers through a reduction in the petroleum levy. Under the new arrangement, refineries will also be required to contribute to the Petroleum Development Levy (PDL) on each litre of petrol.
According to sources, incidental charges on imported oil cargoes will be set at the levels that prevailed before March, with the resulting savings used to reduce the petroleum levy.
Refinery sources claim that the move could lead to a reduction of Rs10 to Rs15 per litre in the petroleum levy. However, they warn that refineries could face losses of more than Rs30 per litre under the new arrangement.
Under the revised formula, the import price of petrol will be determined based on the actual cost of Pakistan State Oil’s (PSO) imported cargoes. The ex-refinery price of petrol may also be maintained at the level prevailing on March 7, 2026, for the next 30 days.
The government has also directed oil refineries to submit daily sales records to the Oil and Gas Regulatory Authority (OGRA) and the Petroleum Division to facilitate verification of additional levy payments.
Meanwhile, refinery sources have expressed reservations about the government’s decision, describing it as a political decision. They have announced plans to write to the government, seeking a review of the new policy.
